For Immediate Release

September
5, 2001

In Cause No. 41907,
the Commissioners unanimously approved the construction of the peak
load-operating unit.The facility will
be built at the company’s A. B. Brown Generation Station in Posey County.The site already contains two 250 MW coal
fire based units installed in 1979 and 1986, and an 80 MW gas turbine unit,
which was installed in 1991.

The Commissioners
believe the added capacity will bolster the company’s reserve margin, to ensure
it can provide reliable service at the lowest reasonable cost, and is the most
economical method to meet the company’s need for additional power.

In a concurring
opinion, Commissioner Camie Swanson-Hull called on the company to look at
expanding demand side initiatives and the use of renewable resource generating
options in the future.

SIGECO provides
service to approximately 132,000 retail customers in six counties in southern
Indiana in and around the city of Evansville.